Strategic Assesment Rum Chata

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For RumChata, The sweet Taste of Success Strategic Assessment November 3, 2014 This article depicts the success of RumChata which is a cream liqueur introduced to target Latin drinkers. The idea came from a non- alcoholic drink called Horchata which is found in Central America. This milky drink has a combination of crushed rice, almonds, cinnamon, and other spices which make this drink one of a kind. RumChata is infused with Caribbean rum from Barbados, real Wisconsin dairy cream and cinnamon, vanilla, sugar and other secret flavors that come from six countries as exotic as Madagascar. The websites shows well over 100 different types of drink recipes. The turning point for RumChata came around when bartenders stated that its taste “like a bowl of General Mills’ Cinnamon Toast Crunch’. The drink is currently outselling Diageo’s Baileys, who were the leader of cream-based liqueurs in some parts of the U.S. Tom Maas originally started the idea back in 2006 but the product was brought to the market in 2009 in the Midwest #1 liquor store chain, Binny’s Beverage Depot. Maas’ company had already sold 15,000 cases which was nearly 4 times the sale of his original product. By April 2014, the millionth case of RumChata was sold. RumChata is now available in all states including Canada and the Caribbean’s. Suprisingly RumChata has not hit the Mexican Market. Trying to sell this product in Latin countries such as Mexico makes it an ideal way to export RumChata because Mexico is part of the NAFTA and it reduces a lot of the taxes and tariffs that trade would have if exported elsewhere. The median age of Mexican Population is 27% years compared to 37% years in the U.S. (World Factbook). This is a good target to the Product of RumChata to sell to the younger crowd. I am sure Maas is going to sell this product in Mexico in the near future and expand beyond. The

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